Unemployment Tax - Program Overview

The Unemployment Tax program collects wage information and unemployment taxes from employers subject to the Texas Unemployment Compensation Act (TUCA). The taxes support the Unemployment Compensation Fund, a reserve from which unemployment benefits are paid to eligible claimants.

Quarterly wage reports and taxes must be filed and paid by the last day of the month following the end of the calendar quarter. Tax Report & Payment Due Dates provides specific due dates for quarterly and annual domestic reports and payments.

Authority & Funding

The Texas Workforce Commission (TWC) administers the Unemployment Tax program in Texas. Unemployment Insurance (UI) is a partnership between the federal and state governments. The U.S. Department of Labor oversees the UI program. At the state level, the Senate Committee on Economic Development and the House Economic and Small Business Development Committee oversee the UI program.

Employer-paid state unemployment taxes and reimbursements pay for state unemployment benefits. The U.S. Department of Labor allocates funds from the Federal Unemployment Tax (FUTA) to the states to pay for administrative and operational costs.

Report Fraud

Equal Opportunity Employer/Program
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